Papa John's controversial founder reportedly used the N-word on a conference call about the chain's response to the NFL's national anthem protests

Papa John’s founder and ex-CEO John Schnatter allegedly used the N-word during a conference call, causing a marketing agency to start severing ties with the pizza chain, Forbes reports.

The pizza chain faced backlash last year when Schnatter blamed the NFL and players’ national anthem protests for Papa John’s subpar sales.

“Colonel Sanders called blacks n—–s,” Schnatter reportedly said in the May conference call, in an apparent attempt to contrast the KFC founder’s statements to his own response to the NFL protests.

A marketing agency reportedly moved to cut ties with Papa John’s after the pizza chain’s controversial founder, John Schnatter, used the N-word during a conference call.

Papa John’s executives and marketing agency Laundry Service held a conference call in May in an attempt to prevent further controversies for the brand, Forbes reports. Last year, Papa John’s faced backlash when Schnatter blamed the NFL and players’ national anthem protests for subpar sales.

“On the May call, Schnatter was asked how he would distance himself from racist groups online,” a source told Forbes. “He responded by downplaying the significance of his NFL statement. ‘Colonel Sanders called blacks n—–s,’ Schnatter allegedly said, before complaining that Sanders never faced public backlash.”

Schnatter also reportedly discussed his early life in Indiana, where a source told Forbes he said “people used to drag African-Americans from trucks until they died.”

According to Forbes, Schnatter meant his comments to show his opposition to racism. Instead, a number of people on the call reportedly found the comments to be offensive. After hearing of the incident, Laundry Service owner Casey Wasserman moved to terminate the agency’s contract with Papa John’s, Forbes reports.

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Papa John’s did not immediately respond to Business Insider’s request for comment.

The company did not dispute Forbes’ reporting, and it noted in a statement to the publication: “Papa John’s condemns racism and any insensitive language, no matter the situation or setting. … We take great pride in the diversity of the Papa John’s family, though diversity and inclusion is an area we will continue to strive to do better.”

In March, Papa John’s announced it had ended its sponsorship deal with the NFL after months of controversies and slumping sales. The next day, Pizza Hut announced that it was the new official pizza of the NFL.

Schnatter has a history of making political statements that have sparked controversy.

He came under fire in 2012 for saying the Affordable Care Act, the healthcare law better known as Obamacare, would be a “lose-lose” for Papa John’s franchisees and employees. He has spoken out extensively against what he says is overregulation by the government.

Schnatter also donated $US1,000 to President Donald Trump’s campaign, though he did not publicly express support for him.